18th Dec 2009 10:02
Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
18 December 2009
Altona Energy Plc ('Altona' or 'the Company')
Chairman's AGM Statement
Altona Energy Plc, the AIM listed Australian based energy company, is holding its Annual General Meeting today at 10.30 a.m. At the meeting, Chairman, Chris Lambert, will make the following statement:
"This has been a transformational period for Altona, culminating in the recent milestone joint venture agreement with CNOOC New Energy Investment Ltd ('CNOOC-NEI'), a subsidiary of one of China's three largest state owned oil companies, to evaluate, with the view to develop and commercialise, our estimated 7.8 billion tonne coal resource (non-JORC standard) in Arckaringa, South Australia. The scale of this project is truly fantastic, and as a result we expect a significant value uplift in Altona as we develop the project in tandem with our partners.
"We have made great progress in advancing what we believe to be a truly world class project. The Company has invested time and money in developing the Arckaringa Project with the aim of maximising the coal's commercial potential and in turn generating substantial value appreciation for shareholders. Its coal resources, of which 1.3 bn tonnes at the Wintinna deposit are now at current JORC standards, represent one of the world's largest undeveloped energy banks and importantly they are located in a recognised mining jurisdiction with existing infrastructure.
"The Board believes that the agreement with CNOOC-NEI represented a huge vote of confidence in the Arckaringa Project and a significant de-risking for Altona. Under the agreement, our Chinese partner has agreed to fund and manage a bankable feasibility study ('BFS') for a coal mine and an integrated value-added project, in return for a 51% interest in Altona's exploration licences. CNOOC-NEI's expertise, resources and market stature should be instrumental in developing the Arckaringa Project. Its interest will increase to 70% for each project to be developed. In the event that CNOOC-NEI wishes to proceed to the development phase of a project prior to the finalisation of the BFS, they will be required to procure Altona's share of debt funding to develop the project.
"The Company's current base case for the Arckaringa Project envisages an operation mining 10Mt of coal to produce 10mmbbl distillate per annum and 560MW of exportable power. The coal quality is ideal for conversion to synthetic gas ('syngas') and high value fuels and chemical feedstocks, using existing commercial technologies, at low cost and to generate low emission power. South Australia also faces a shortage of base load power, fuel and water, both generally and especially for the mining sector, with the Arckaringa Project ideally located to help meet these needs. Once on stream, the Arckaringa Project would help make South Australia and the Northern Territories self sufficient in diesel fuel, particularly since the closure of the Port Stanvac refinery. Additionally the Arckaringa Project also has the potential for coal and liquids exports to China and other Asian destinations.
"On a political level we have built relationships with the South Australian Government and the Department of Primary Industry and Resources of South Australia to ensure that all parties are fully cognisant of the plans for the Arckaringa Project's development. We are also liaising closely with the Foreign Investment Review Board ('FIRB') whose approval is crucial to the advancement of the project and on the progress of which we will be keeping shareholders informed. Additionally, Altona has also been accepted as a Foundation Member of the Global Carbon Capture and Storage Institute, which we believe is another important endorsement to what we are trying to achieve.
"Finally I'd like to take this opportunity to thank all those involved with the Company, reiterate our commitment to the project and express my excitement to be working with CNOOC-NEI to develop what I believe to be one of the most exciting energy projects where investors can gain early participation."
In addition, a presentation was delivered at the AGM, a copy of the presentation will shortly be available on the Company's website www.altonaenergy.com.
**ENDS**
For further information visit www.altonaenergy.com or please contact:
|
Christopher Lambert |
Altona Chairman |
Tel: +44 (0) 20 7024 8391 |
|
Christopher Schrape |
Altona Managing Director |
Tel: +44 (0) 20 7024 8391 |
|
Samantha Harrison |
Ambrian Partners Limited |
Tel: +44 (0) 20 7634 4705 |
|
Alexandra Carse |
Ambrian Partners Limited |
Tel: +44 (0) 20 7634 4705 |
|
Paul Youens |
St Brides Media & Finance Ltd |
Tel: +44 (0) 20 7236 1177 |
|
Hugo de Salis |
St Brides Media & Finance Ltd |
Tel: +44 (0) 20 7236 1177 |
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